Simsbury, CT - Board of Finance Minutes-Special-NOVEMBER 15, 2004

The Special Meeting of the Board of Finance was called to order at 7:02 PM in the Lower Conference Room at the Simsbury Town Hall. The following members were present: Chairman Paul Henault, Nicholas Mason, Kevin North and Michael Wade. BOF member Candace Fitzpatrick joined the meeting at 7:40 PM. Also present were Library Director Susan Bullock, Finance Director/Treasurer Kevin Kane, First Selectman Tom Vincent and other interested parties.

Mr. North moved to approve the minutes from the October 19, 2004 Special Meeting. The motion was seconded by Mr. Mason and passed with three (3) yes votes and one (1) abstention (Mr. Wade).

Mr. Vincent went over figures that the Town has available for Simsbury Meadows totaling $1,016,111.29. Mr. Mason asked what the overall cost of the total project is going to be and guessed at $3 or $4 million. Mr. Vincent noted that there would be donated money as well as Town money. The current amount of donated money is $366,111.29. He added that the band shell project as proposed is two phases. The third phase is not being done as of yet. Mr. Mason expressed concern about the way segments of the project have been done piecemeal and wondered if they might have a project that the taxpayers haven't been told about. Mr. North added that it appears that incrementally this project has the potential to grow to a total investment

Mr. Henault asked Mr. Vincent if he would put all the numbers he provided into a memo and send it to the BOF for the record. He noted that some projects may have to be taken off the six-year plan.

Mr. Kane stated that at this point it is at a standstill. He noted the BOE's fixed assets are not done yet, and they're very material. Basically, the auditors are looking for information from the BOE. Then it will go back to Mr. Kane. He felt that they will have to file an extension, that it wouldn't be done by the end of December.

Mr. Mason reported on his attendance at the last Public Building Committee meeting. He stated that the Police Dept. phase that they're working on is going along well and should be completed by mid-December.

Mr. Mason said that some of the demolition was held up because of using the auditorium for a polling site on November 2nd. That's on Phase I. He added that they have not made a decision to go ahead with Phase II at this point. He noted that Phase II has some significant issues that the Fire Marshall has raised as to safety and bringing the building up to code.

Mr. Mason stated that the PBC is at the beginning of the project for the Simsbury High School auditorium and track. They've determined that there is no asbestos in the ceiling of the auditorium. He noted that, tonight, the PBC is interviewing four or five different organizations who can potentially do the track.

Mr. Henault referred to Mr. Kane's November 12th memo, "Affordability On New Capital Projects," containing exhibits and analysis. He explained that the BOF operates off of a Capital Debt Policy, and 7% is what they can reasonably allow for principal and interest payments. He added that they have adhered to that policy since 1989. The only exception to that policy was made because of the High School project, the largest single Capital Project request that the Town of Simsbury has ever had to face.

Mr. Kane reviewed his memo and explained that the deviation from the Debt Policy for the High School project was a one-time exception. The High School was supposed to take upwards of 5% of the Debt Policy, and the other projects were supposed to be driven down to 5% or less.

Returning to his memo and scenarios on the affordability of new Capital Projects, it was determined that the Town is over by $7.5 million as to what the Town could afford using the current Debt Policy. Mr. Henault named the largest items of the next six years as Library Expansion at $7.3 million, Henry James Auditorium at $4 million, Renovations to Simsbury Farms at $2.8 million, Tariffville School at $4 million, Simsbury Meadows at $1.3 million, Hoskins Crossing Project at $3.7 million and Latimer Lane Art Room and Modular Classroom Replacements at $2.4 million.

Mr. Henault expressed concern about the eventual Meadowood Project settlement. If they are allowed to put in anywhere near the amount of homes they are requesting, the Town may be faced with the prospect of a new elementary school. He added that elementary schools are running in the $19 - $23 million range.

Mr. Mason wondered whether it would be worth going ahead with the Library Expansion Project if the amount had to be reduced significantly. He stated that he personally would like to see the project done, but does it have to be $7,360,000, or could adjustments be made?

Mr. Henault asked Ms. Bullock if $7.3 million has to be the "magic number". Ms. Bullock stated that they cannot get a State Grant for a phase-in project. The State funds only 20-year projects (having a useful life of 20 years). She added that they followed the State formulas for space needed, and they came up with the 19,600 sq. ft. additional space needed. Then the architect drew up his plan, and it went to the cost estimators who came up with the $7.3 million figure. She stated that they already cut back the project from what they thought they might need. She added that the library was built in 1985, and aside from the fact that it is the Town's newest building, it is the heaviest used.

The recent renovation of the Farmington Library was brought up, and Ms. Bullock noted that there's is a Private Library run by the Farmington Village Association. They have always had a capital campaign every year, so they have the machinery there to launch a major campaign which Simsbury does not.

Ms. Bullock stated that this is the first time in two years that money has been available for the $500,000 State Grant. If you don't build the 19,600 sq. ft. in one project, the grant will be lost, she added.

Mr. Henault explained that if this year they say O.K. to the Library, then they have to take all the other projects off the table. If they do a smaller Library Project, they can allow for other projects. Then the other pieces of the Library Project can be done in future years.

Ms. Fitzpatrick stated that the BOF has worked hard to improve their Reserves, and she wants to be sure they continue to protect them. She stated that Reserves is one source of funding she would prefer not to use. She added that the Debt Policy is important to the long-term fiscal health of the Town. She stated that the BOF showed flexibility in allowing the High School to not conform because of its size. She said she's not sure that asking the Town to allow another large project as submitted, because it doesn't conform, to be made an exception. Ms. Fitzpatrick stated that she loves the library and that she recognizes that they need to do something. She stated that maybe they should forego applying for the State Grant and do it in phases.

Mr. North stated that in the end it is inescapable that the BOF is going to be placed in a position of eliminating certain requests and reducing the scope of others. He noted that there is as much as $1.2 million of Reserves for Capital Projects, and with a Reserve balance that's approaching 10%, he thinks they can comfortably consider using as much as $1.2 to fund the Capital Projects before them. He added that the Library is a wonderful project but its scope will have to be reduced. He thought that perhaps a challenge will have to be put before the community to raise a significant portion of these funds privately.

Mr. Henault stated that the BOS and BOE have to present their Capital Projects on March 1, 2005. He suggested that he write a letter to both Boards explaining the situation and how all their projects fitting in significantly exceeds what the Town's capabilities are. He would suggest that the Boards prioritize their projects to see which will conform to stay within the 7%. The BOF members agreed. Mr. Henault added that if the BOS and BOE don't prioritize, the BOF will have to.

Mr. Mason said that he had talked to Charlie Moret recently, and he said that the BOE were getting close to an agreement in the teacher negotiations. Mr. Kane stated that only one small Town union is still unsettled (6 employees).

Mr. Mason brought up the list of Open Action Items which always follows the minutes. He noted that several items should be moved to the Closed Action Items List. He also mentioned that some items that are supposed to be presented to the BOF monthly aren't being. It was decided that he would contact the clerk to revise the Open Action Items list.